Boston Scientific may have slimmed down its sprawling corporate structure in the first quarter of the year, but that didn’t keep it from plumping up its earnings for the period.
The medtech’s net sales jumped 10% over its performance during the same period last year. The total reached just past the $3 billion threshold, compared to the $2.75 billion it earned in the first three months of 2021.
The jump came even though its earnings sheet for the quarter was short one division compared to the previous year’s. The disparity comes from the sale of Boston Scientific’s BTG specialty pharmaceuticals division, which was completed in March 2021. Until that point, BTG added $13 million that quarter that wasn’t present this time around.
With that and other economic challenges throughout the quarter, the overall increase outdid Boston Scientific’s own expectations. The company had previously set its sights on more modest year-over-year growth, expecting it to clock in somewhere between 5% and 8% on both a reported and an organic basis; in addition to the 10% surge in reported earnings, it tallied its organic growth at 9.7%.
With those higher-than-expected numbers in the rearview, the devicemaker has slightly nudged up its predictions for the full year. Heading into 2022, Boston Scientific aimed to grow between 6% and 8% on a reported basis but now expects growth to fall closer to the 7% to 9% range.
“Our growth this quarter was fueled by strong execution from our global team, our innovative portfolio and improved procedure volume,” said CEO Mike Mahoney. “We are pleased with our first quarter performance and outlook for the full year, despite the impact of macroeconomic headwinds, and we look forward to bringing meaningful innovation to customers and the patients we serve together.”
The sales surge came as Boston Scientific spent the first quarter reorganizing its corporate layout. The end result clustered all of its various medical device businesses under just two headings: medical surgical and cardiovascular.
The restructuring eliminated the rhythm and neuro category. Its cardiac rhythm management and electrophysiology divisions are now housed within the cardiovascular segment—which is split between the cardiology and peripheral interventions departments—while its neuromodulation business was moved to MedSurg, which also encompasses endoscopy, urology and pelvic health.
For the first quarter of the year, the cardiovascular category edged out MedSurg to lead the way in its sales take. It earned $1.87 billion, representing more than 11% growth compared to the same businesses last year, while MedSurg jumped just over 9%, to $1.15 billion, for the period.
The quarter was a busy one for the company. In addition to the internal restructuring, it also landed the FDA’s nod to begin rolling out two new products: a fully retractable coil for arterial and venous embolization procedures and software that improves placement of deep brain stimulation devices in patients with Parkinson’s disease and essential tremor.
Meanwhile, the agency also gave Boston Scientific the go-ahead to begin a clinical trial of its TheraSphere radioactive glass beads, which migrate to the brain to treat recurring tumors.
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